Bank of England set to announce interest rate decision at midday
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The Bank of England is set to hike interest rates to their highest level in 13 years as it seeks to tackle the UK’s cost of living crisis.
They should fall from 0.75% to 1%, a level not seen since the consequences of the financial crisis in early 2009.
Until recently, the consensus was that a rise to 1.25% was likely, but a set of increasingly alarming economic indicators tipped the scales towards a more cautious approach.
The Bank of England’s Monetary Policy Committee (MPC) meets on Thursday to discuss new interest rates as the UK faces runaway inflation fueled by soaring energy costs.
His decision should be announced at midday.
Andrew Bailey, the Governor of the Bank of England, recently warned that the bank was “walking a very fine line” between fighting inflation and preventing a recession.
Mortgage Warning
Paul Johnson of the Institute for Fiscal Studies warned of the impact on retail mortgages of the expected rise in interest rates.
“We are still at historically low interest rate levels,” he told Radio 4. Today program. “So you look at it that way and think quarter percent, half percent, still very low, it doesn’t look very dramatic.
The director added: “On the other hand, of course, if you have a mortgage and it goes up half a percent or 1% proportionally, that’s a very big increase.
“It could double your mortgage interest payments over a period of time, so even small changes now, at least once some fixed rates are in place, could have very large effects on people with large mortgages.”
Zoe TidmanMay 5, 2022 9:23 a.m.
What are we waiting for today?
The Bank of England is set to raise interest rates to their highest level in 13 years as it seeks to rein in the rising cost of living.
Its Monetary Policy Committee (MPC) meets on Thursday to make its final rate decision.
Ben Chapmanour sales correspondent has more:
Zoe TidmanMay 5, 2022 8:59 a.m.
Hello. Welcome to our live coverage as we await the Bank of England’s interest rate decision.
Zoe TidmanMay 5, 2022 8:41 a.m.
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Source: www.independent.co.uk
This notice was published: 2022-05-05 08:14:35
